Question

lena owns a cookie bakery in a small city. there are six other bakeries that offer cookies in the city. which of the following is not an example of the threat of entry that lena faces in her local baked goods market? a skilled baker who just finished culinary training might open a new cookie bakery in the city. one of the six bakeries that offer cookies in the city may decide to cease cookie production in order to focus on cakes. a cookie bakery in another city might add a new location by opening a cookie bakery in lena's city. a doughnut shop in lena'

Answer 1

The following which is not an example of the threat of entry that Lena faces in her local baked goods market is one of the six bakeries that offer cookies in the city may decide to cease cookie production in order to focus on cakes which is therefore denoted as option B.

What is Production?

This is defined as the process in which resources which are in the form of raw materials are transformed into finished products in the form of goods and services through various processes.

For a new company there are different factors which affects its entry into the new market and examples include the number of competitors who produce the same type of goods and services.

One of the six bakeries that offer cookies in the city deciding to cease cookie production in order to focus on cakes is not a threat of the entry because the competitor has reduced which will make it easier to enter the market.

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